Action News talked to a number of consumers who all say they experienced a nightmare when trying to buy a modular house from a company called Love Homes. The customers claim the business showed them anything but love and they're just a few examples of a long list of people who've taken the company to court.
For many buyers, the first time they see a Love Home - you might say it's love at first sight.
Love Homes in Allentown sells modular homes and manufactured homes - which are better known as mobile homes.
But before you put down a deposit for one of your own, read the contract and listen to the warnings from some of Love Homes' customers. "I am financially broke," Michael Zedowsky of Center Valley, Pa. told Action News. "I'm on the verge of losing this house because of the nonsense that they're playing."
Last year, Michael Zedowsky gave Love Homes $20,000 for a manufactured home. But later, he sued claiming: "When the time came on closing date, they changed the terms and the conditions saying that I couldn't get the house because my credit was no good. Well, I told them my credit was no good." Maryanne Mackin put down her entire life savings of $16,000.
" They promised me they would get me a home, put it in the park that I requested in Quakertown, get me financing," Mackin said, "and all I would have to do is pack my belongings and move in."
But nearly a year later, like Zedowski, Mackin still has no Love Home.
Neither does Jason McDonald. McDonald, just like Zedowski and Mackin, did ask Higgins for a full refund.
"He said, 'No, I don't have the money.' He wasn't going to give back the money. It wasn't his problem," McDonald said.
"They can say we owe them money - but our contracts say - there is no provision for refunds," said Larry Higgins, the president of Love Homes.
But Mcdonald sued to get his thousand-dollar deposit back - and won after Love Homes failed to show up to court. An arbitration panel ordered Love Homes to return Zedowski's $20,000 but the company is appealing.
The President of Love Homes, Larry Higgins, later told Action News that he has made arrangements to give money back to all the parties involved and quote - We have reached an agreement...to the satisfaction of both sides in spite of the fact that we still believe we acted properly.
But there's no love lost between a long list of customers and the company. Many others have taken Love Homes to court. In one case, the company was ordered to pay $3,400 and it recently settled a case brought by a couple in Bethlehem.
So, when buying a modular home experts recommend that you do your homework:
* Put down as small a deposit as possible
* Check the company's complaint history
* A manufactured home is basically a traditional mobile home that sits on leased property. To sell a manufactured home, a company must have a vehicle dealer's license issued by the Department of State as well as a dealer's number from the Department of Transportation. In these cases, down payments do not have to be kept in escrow accounts.
* Also, beware, if the seller of a manufactured home offers to help you find financing because that business must be licensed by the Pennsylvania Department of Banking.
Here are some more helpful links:
http://www.consumersunion.org/other/mh/brochure.htm
http://www.portal.state.pa.us/portal/server.pt/community/banking_home/14319
http://www.portal.state.pa.us/portal/server.pt/community/state_board_of_vehicle_manufacturers,_dealers_and_salespersons/12526
http://www.dos.state.pa.us/portal/server.pt/community/department_of_state/12405
http://www.pmha.org/faqs.htm
http://www.pmha.org/water.htm
